In a landmark decision, the UK government has announced that £1.5 billion will be transferred to the pensions of 112,000 former coalminers, rectifying a long-standing injustice. This substantial boost will increase the annual pensions of these former mineworkers by 32%, equating to an average increase of £29 per week for each member.
Energy Secretary Ed Miliband revealed the news in yesterday’s budget statement, confirming that this financial intervention will provide much-needed support to those who dedicated their lives to the coal industry. The funds come from an investment reserve fund that was established in 1992 using profits from the Mineworkers’ Pension Scheme. Originally intended as a buffer against potential deficits, this money was scheduled to return to the government in 2029. However, following years of campaigning by former mineworkers and their families, the government has now agreed to transfer the funds to the pension scheme.
“For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families,” Miliband stated. “Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice—today is their victory.”
The announcement marks a significant turning point for former mineworkers, who have long sought a fairer share of their pension entitlements. When British Coal was privatised in 1994, the government agreed to take half of any profits generated by the pension scheme while guaranteeing that pensions would rise in line with inflation. Despite the scheme consistently producing strong returns, the government has not contributed any funds, leading to calls for a review of this agreement.
Minister for Industry Sarah Jones added, “Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved. We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most.”
Gary Saunders, Chair of the Trustees of the Mineworkers’ Pension Scheme, expressed his delight at the news, stating, “As a Trustee board, we are pleased we will be able to put more money in our members’ pockets.” The trustees are now tasked with determining how the £1.5 billion fund will be distributed among the members, with plans to implement the increased payouts from November this year.
Allen Young, Pensioner Representative Trustee for the North East of England, praised the government’s decision as a positive development for members of the scheme. He indicated that the trustees would communicate this exciting news to all members shortly.
The announcement coincides with broader efforts by the government to advance its clean energy initiatives. Recent measures have included lifting the ban on onshore wind projects, launching Great British Energy, and establishing partnerships to accelerate offshore wind developments. These initiatives reflect the government’s commitment to boosting energy independence and creating job opportunities across the country.
Overall, this financial support for former coalminers is not just a rectification of past wrongs, but a step toward securing a more equitable future for those who contributed significantly to the UK’s industrial legacy.
